Google’s email service, Gmail, has also seen strong growth over the last 12 months. A key differentiator for Google has been the deep integration with other Google tools and services that Gmail provides. However, Google still lags behind in its some of its social networking features and needs to implement a richer set of features such as communities, social bookmarking, and wikis.

Google’s Google Apps business-oriented services have become popular particularly among businesses of all sizes looking for an alternative to more expensive, on-premise products. However, Google will continue to face tough competition in this market from more established enterprise players such as Microsoft.

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